Bitcoin jilted below $7,000 on Wednesday as the price of several major digital currencies knock.
The world’s largest cryptocurrency by market value fell 8 percent to as low as $6,782.64, according to figures from industry website CoinDesk, which tracks the price across a hundred of exchanges.
Mati Greenspan, senior market analyst at eToro, maintained that the move was less correlated to recent fears of a global barter war and more associated with traders evaluating the assets in their portfolio and dispiriting to assign value to them.
“I think that there is a big connection in the way that people are run their portfolios and the cryptocurrencies have been increasingly correlated with the assortment markets especially in the last few weeks,” he told CNBC in a phone vetting.
“This (comes) as more and more brokers add bitcoin, the liquidity bridges are being assembled.”
Ethereum and ripple, the second and third-largest cryptocurrencies by market capitalization mutatis mutandis, both saw sharp drops on Wednesday. Ethereum fell more than 9 percent to $375.31 while soupon fell more than 10 percent to 50 cents.
China lay bare new tariffs on 106 U.S. products on Wednesday, a move that has shaken investors and more ignited fears of a trade war.
Cryptocurrencies like bitcoin, which are decentralized and not backed by directions, are extremely volatile assets.
Charles Hayter, chief executive of CryptoCompare, said that investors were appropriate fleeing to safer investments as protectionism concerns took hold.
“In the fantastic scheme of things, cryptos lie on (the) extremely risky end of the spectrum and are for times of hot mazuma,” Hayter told CNBC in an email.
“The hint of a trade war puts a bit of angst into the mix and as we all now markets correlate in various periods depending on the exogenous constituents.”
Bitcoin suffered its worst ever start to the year this year, take off 48 percent over the first quarter. The cryptocurrency hit an all-time grave near $20,000 in December.